UpDown Binary Signals Review

I think I have commented before that there are an ever growing number of binary options signal services appearing on the markets. However the sign of a good service is one that has been in existence for a while. UpDown Binary Signals is one such provider that I haven’t until now had the opportunity to review.

Like nearly all providers of binary options signals, I have read mixed reports on the results achieved by UpDown signals. However on thing I have learnt is that you have to be skeptical of many reviews and comments that you read when it comes to financial products and services.

Many people simply struggle to implement the signals provided correctly or fail to follow money basic money management rules. Then when it all goes wrong they blame the service rather than their own actions. Unfortunately these tend to be the people who shout loudest, making it difficult to gain a real perspective on performance.

So I thought it was about time to kick off with some live testing of these signals and check out their performance for myself.

The UpDown Binary Signals Service

Signals for the service are generated according to an ‘algorithmic model’ provided by a solution called ‘Financial Maps’. This works through a five stage process which is designed to calculate the statistical likelihood of an opportunity delivering the expected result.

The five stages listed are used to analyse the markets as follows –

1. Assets List

Information and data is gathered on all available assets. This is used to determine if they are likely to react positively to the statistical models. The data is used to filter out any markets where it is assumed to be less easy to predict direction.

2. Pre-Opening Data

Assets which have passed the first screen are then run through a further algorithm to determine expected volume and trade sizes. This is run against historical data in order to help forecast the most likely movements.

3. Market At Opening

Assets that have made it this far in the screening process are monitored to observe their price action over the first half an hour of trading.

4. Proprietary Models

A further four mathematical models are then run on qualifying assets to further refine potential trading opportunities. This is carried out in real time to help improve accuracy.

5. Filtering The Best Signals

This final stage helps to filter the weak from the strong. Potential opportunities are ranked according to their strength, with those showing the strongest potential being selected for alerts.

Up to five signals are selected each trading day according to the above criteria. They are then sent out as an alert via SMS at around 11:30 EST. The literature on the website makes it clear that you will usually receive around three signals (the best opportunities) each day. On days when markets are unclear you may receive none. This is fair given that no one is going to want to trade their account if the probability of success is limited.

Once you receive the alert the next step is to check the current live market price. You only open a contract if you can get in at the suggested level sent or better.

For example if you get a Call Option sent for Oil at 93.04, you would only open a Call contract if it was at this level or below. It is suggested that you wait for only 10 minutes after receiving the alert to see if you can get your entry. If not then disregard the position for the day.

Past Performance

UpDown signals claim to deliver solid long term performance. This is currently stands at 76% over the last 88 days. An average of 3.3 signals per day were sent. The most recent trades results can be viewed by visiting the website.

Pricing

The service comes in at $99 per month. This falls in line with most other binary signals providers. A one week trial is available for just $4.99. This is a low sum and will allow you to try out the signals to see if they work for you. Of course, always remember to use this period to test the results. I recommend you trade only mall amounts in case things don’t’ work out as expected.

Live Test

If you have already taken a look at some of the live signals reviews on this site then the format will be broadly familiar. All trades I take are logged below giving you access to independent live results. These can be tracked so that you will be able to build up a picture of whether you think these signals are right for you.

Initial Verdict

The website looks good and ultimately everything is clearly explained. Importantly the results provided also look respectable, however as always, it is the actualresults we are interested in.

Update 19/01/2013

So this Friday marks pretty much the half way point in the review of this service. Those are familiar with our reviews will know that I like to post an update at this point to cover what I have found out so far. It also allows me to clarify certain points about the service.

As a starting point it is best perhaps to look at the results to date. A summary is as follows:-

8 wins, 4 loss, 3 couldn’t get entry

This is shy of the quoted rate of return (running at around 67% at present) but then we also need to factor in the 11/01 when I was not around to place the signals that were sent. This could easily have pushed the performance up to the quoted strike rate, assuming an entry was possible.

It is also worth noting that the last week has been quite heavy on news and this is no doubt reflected in the two days where no signals were sent.

It worth clearing up some questions on the signals themselves. Firstly as you can see from the results below you will notice that a lot of the signals are being placed on commodities. This may impact the ability to place all signals as not all of these assets are readily available from brokers.

Secondly there is the issue of timing. The website suggests that the alerts are good for predicting the trend for up to three hours. This I took as meaning you would simply place for the the latest expiry time from the broker (hourly) which was fine as long as it was within the 3 hour window. However the more recent alerts have included a ‘specific’ expiry time (usually 19:30 GMT). This will pose a problem for many people as there are very few brokers offering these contracts.

Support

I contracted support who were fast in their response to my question. They informed me they are using TradeStation. Now while I hold nothing against Tradestation (and I am sure there will be some others offering three hour expires) if does mean that these signals are unlikely to have broad-market appeal. I really don’t want to have to open yet another broker account just to accommodate these alerts. I expect others may also find this a limiting factor.

Therefore I will continue with the one hour expiry times as I have been up to now.

Scroll Down To Read My Final Verdict

UpDown Signals Results – Live Trading

Date

Asset

Direction

Level

Placed

My Result

07/01/13

Oil

PUT

93.17

Yes

Win

07/01/13

Platinum

PUT

1558.7

Yes

Win

08/01/13

Wheat

PUT

753

Yes

Win

08/01/13

EUR/USD

PUT

1.3067

Yes

Loss

08/01/13

USD/CAD

CALL

0.9876

Yes

Loss

09/01/13

Coffee

CALL

147.55

Yes

Win

09/01/13

Wheat

PUT

747

Yes

Loss

09/01/13

EUR/JPY

CALL

114.7

Yes

Loss

09/01/13

EUR/USD

CALL

1.3045

Yes

Win

10/01/13

USD/JPY

PUT

88.175

Yes

Win

11/01/13

Signals I was unable to place (personal reasons)

14/01/13

No Trades

15/01/13

Platinum

CALL

1686.4

Yes

Win

15/01/13

USD/CAD

CALL

0.9844

Yes

Win

16/01/13

USD/JPY

CALL

88.519

No

–

17/01/13

No Trades

18/01/13

EUR/USD

CALL

1.3286

No

Win

18/01/13

USD/CHF

PUT

0.9347

No

Win

21/01/13

No Trades – Martin Luther King Day US

22/01/13

AUD/USD

CALL

1.055

Yes

Win

22/01/13

EUR/JPY

CALL

117.72

Yes

Win

22/01/13

EUR/USD

CALL

1.3289

Yes

Win

23/01/13

SP500

PUT

1485.3

Yes

Win

24/01/13

AUD/USD

PUT

1.0474

Yes

Win

25/01/13

AUD/USD

PUT

1.0427

Yes

Win

25/01/13

EUR/JPY

PUT

122.55

Yes

Win

25/01/13

EUR.USD

PUT

1.3466

Yes

Win

28/01/13

GBP/USD

PUT

1.5689

Yes

Win

29/01/13

AUD/USD

CALL

1.0458

Yes

Win

29/01/13

EUR/JPY

PUT

122.24

No

–

29/01/13

EUR/USD

PUT

1.3479

No

–

29/01/13

USD/JPY

PUT

90.69

Yes

Loss

30/01/13

EUR/JPY

PUT

123.65

Yes

Loss

30/01/13

USD/JPY

PUT

91.09

Yes

Loss

31/01/13

GBP/USD

CALL

1.5846

Yes

Win

31/01/13

USD/CHF

PUT

0.9104

No

–

01/02/13

EUR/JPY

PUT

126.76

Yes

Win

01/02/13

USD/JPY

PUT

92.572

Yes

Loss

Verdict

My overriding opinion of the UpDown signal service is that this is one of the better services on the market.

It is true however that the results I got may not be entirely accurate, as many of the initial signals I placed I used an hourly expiry time. This was due to the exact expiry time in the alerts not being available on the trading accounts I had available to me at the time.

I think that this is really the only caveat to using this service – you need to make sure that you are happy that your broker offers the ability to set the specified expiry times required by these signals.

The UpDown results are certainly encouraging, consequently making this service worth a look .Trying it ‘for size’ is hardly a big ask. A ‘non-recurring’ 7 day trial is available for $25 or you can choose monthly ($97) or quarterly ($197) plans.

UpDown Signals Review Summary

Pros

Good historical performance with over 76% winning positions

Daily signal suggestions with up to 5 opportunities

Defined trading window – 13:30 EST

Cons

You will need to be around to place trades in the suggested time window

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Trading on the financial markets with Binary Options has significant risk. You could end up losing all of your deposited capital. Before trading you should thoroughly familiarize yourself with and accept the risks involved. If you are unsure as to whether this form of trading meets with your objectives then please seek independent financial advice and refrain from acting on any information on this website. Please read our Risk Disclaimer for more information